NTMA seeks end to savings stamps

AN POST SAVING SCHEME:AN POST is paid €1 million per annum by the National Treasury Management Agency (NTMA) for managing a savings scheme for children that generates €4 million to €4.5 million annually, according to the Comptroller Auditor General's (CAG) report for 2007.

Successive proposals to the minister for finance in 1992, 1997 and 1998 to cancel the scheme were rejected because of the scheme's perceived value in promoting the savings habit in young people.

The NTMA asked again last year that the An Post savings stamps scheme be abolished, but on the basis that a replacement scheme be put in place. Details of a new scheme are now being finalised, according to the report.

An Post manages a number of Government retail savings products on behalf of the NTMA. In 2007, these savings totalled €5.6 billion which represents approximately 15 per cent of the national debt. An Post was paid €47 million in fees.

The NTMA has been of the view for some years that the cost of the savings stamps scheme for children is disproportionate to the benefits, according to the report.

"While recognising the argument that the savings habit should be encouraged, a move to a less costly administrative mechanism is desirable," comments the CAG report.